Bids invited for 10,523.15 MHz spectrum for 20 years validity at non-refundable processing fee of INR 1 lakh. Last date for submission is April 22. The bids will be valid up to September 30.
Mar 19, 2024
Come May 20, the Department of Telecommunications (DoT) will start inviting bids from telecom operators for the auction of eight spectrum bands having high frequency of 10,523.15 megahertz (MHz) at a reserve price of INR 96,317.65 crore.
A notice issued by DoT said that the last date for submission of bids is April 22. Applications for entering the auctions come with a non-refundable processing fee of INR 1 lakh. The bids made would be valid up to September 30.
The Union Cabinet approved the auction of airwaves in the 800, 900, 1800, 2100, 2300, 2500, 3300 MHz and 26 GHz bands, covering a large chunk of voice and data spectrum, on February 8. All unsold spectrums from the last sale will be up for bidding again.
It said while the live e-auction of airwaves across major spectrum bands will be held 73 days from now, a long timeline of steps leading up to it has been released by the DoT.
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This includes the pre-qualification of bidders on May 6, the inauguration of the final list of bidders on May 9, and a mock auction on May 13 and 14.
Telecom companies would have the right to use the spectrum for 20 years from the date of frequency assignment. If the same licensee who is holding the spectrum wins the spectrum, this would be the day following the expiry date of the earlier assignment.
All entities which have a unified access license (UAL), or fulfill the conditions for receiving one can participate in the auctions. Issued by the government, the licenses allow wired and wireless technologies to work together as a single, robust network.
As per the notice, a unified license could only be awarded to an Indian firm. However, foreign applicants may form or acquire an Indian company to obtain it.
Foreign entities were allowed to participate in the auctions directly and apply for a license through the Indian company, where they can hold 100 percent equity stake under the automatic route for foreign direct investment. However, restrictions remain on investments from countries sharing a land border with India.
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New entrants into the telecom space would also be required to show a net worth of INR 100 crore per license service area, including INR 5 crore each for Jammu & Kashmir and North East Service Areas, in which the bidder wanted to submit bids.
The rules mandates license holders, who currently do not hold spectrum, to be treated as new entrants.
Analysts have pointed out that the higher frequency bands were expected to command a lower price, similar to the last auction. Airwaves in the 800 MHz, and 2300 MHz bands were likely to get a tepid response, given that they had received no bids last time.
In the last round of auctions on August 1, 2022, the government had put up 72,098 MHz of 5G spectrum capable of offering ultra-high speed mobile internet connectivity. Of this, 51,236 MHz or 71 per cent of the total was sold with the bid amounting to INR 1.5 trillion.
